A MELBOURNE-based property trust has pumped up its portfolio with the acquisition of a service station asset north of Brisbane.
APN Property Group’s listed Convenience Retail REIT has snapped up the 7-Eleven service station at 205 Old Gympie Rd, Dakabin, for $4,379,322.
The latest in a string of sales of fuel-based convenience retail properties, the deal shows demand for the asset class is continuing to drive activity in Queensland’s investment market.
JLL’s Campbell Bowers, who negotiated the sale, said the transaction reflected a yield of 6.78 per cent.
“This was a rare opportunity to acquire a recently-built 7-Eleven service station with a new 15-year lease on a large landholding adjacent to the booming North Lakes precinct,” he said.
Built in 2016, the asset sits on a prominent 3324sq m site on the corner of Old Gympie and White Horse roads with exposure to high volumes of vehicular traffic that drives strong trade.
It comprises a freestanding service station with six fuel bowsers capable of servicing 12 vehicles at a time.
The total building area includes a 186sq m retail shop and a 228sq m canopy.
Mr Bowers said the property had previously been passed in at auction through another agency, “We approached the vendor and recommended they present the asset back to the market through an expressions-of-interest campaign, which drew strong interest from local and interstate private and institutional investors,” he said.
“Overall, the property presented investors with a secure and long-term income growth opportunity and potential for long-term development upside.”
The deal comes off the back of several sales of service stations, including United Petroleum Labrador ($8.975 million), United Petroleum Virginia ($6 million), 7-Eleven Broadbeach ($10.1 million) and 7-Eleven Durack $5.25 million).
“With finance at record lows paired with the onus of contamination risk and remediation costs falling on the tenant (or indemnifying the owner), investors have moved to seek out commercial property and fuel investments with strong lease covenants that are underpinned by strong land value,” Mr Bowers said.
Extracted from Herald Sun.